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klaviyo-revenue

Klaviyo Revenue: 2023, 2024 Q1 & Q2

by Giles ThomasLast updated on September 26, 2024

Introduction

Klaviyo (NYSE: KVYO), a leading platform for smarter digital relationships, has released its financial performance for FY 2023 and provided insights into its Q1 and Q2 2024 performance. This report highlights the company’s impressive revenue growth, key business highlights, and future outlook as it continues to expand its AI-driven platform and customer base.

FY 2023 Overall Financial Performance

Revenue and Growth:
Klaviyo closed 2023 with total revenue of $698.1 million, marking a 48% year-over-year (YoY) growth from FY 2022, which had $472.7 million in revenue.

Profit Margins (Llaviyo earnings):

  • Gross profit for FY 2023 was $520.2 million, with a gross margin of 75% compared to 73% in 2022.
  • Non-GAAP gross profit reached $547.9 million, achieving a 78% gross margin, up from 73% the previous year.

Operating Loss:
Despite its strong revenue growth, Klaviyo reported an operating loss of $(330.6) million, representing an operating margin of (47)%, compared to a $(55.0) million operating loss in FY 2022.

Non-GAAP Operating Income:
On a non-GAAP basis, Klaviyo posted an operating income of $78.1 million, resulting in an 11% margin. This is a significant improvement from the non-GAAP operating loss of $(26.2) million in FY 2022.

Cash Flow:
Klaviyo generated $119.4 million in cash from operating activities, representing an operating cash flow margin of 17%. Free cash flow for the year was $110.0 million, with a 16% margin.

Read their investor update.

Key Business Highlights for FY 2023

  • The launch of Klaviyo AI introduced new features like Segments AI, Email AI, and Forms AI, allowing customers to leverage AI capabilities across the platform.
  • Klaviyo powered over $50 billion in Klaviyo Attributed Value (KAV) for its customers throughout the year.
  • The customer base grew to over 143,000 by the end of 2023, up from 119,000 in 2022, with a strong increase in SMS usage—16% of customers utilized the SMS feature, compared to 13.7% in 2022.
  • Klaviyo expanded into larger enterprises, with 1,958 customers generating over $50,000 in Annual Recurring Revenue (ARR), an 80% YoY increase.

Q1 2024 Financial Performance

Revenue:
In Q1 2024, Klaviyo reported total revenue of $210.0 million, a 35% YoY increase compared to Q1 2023’s $156.1 million.

Profit Margins:

  • Gross profit for the quarter was $165.1 million, with a gross margin of 79%.
  • Non-GAAP gross profit was $167.6 million, yielding an 80% gross margin.

Operating Loss:
The company reported an operating loss of $(22.1) million, with an operating margin of (11)%, a shift from the small operating profit of $0.9 million in Q1 2023.

Non-GAAP Operating Income:
Klaviyo’s non-GAAP operating income for Q1 was $29.3 million, with a 14% margin, down slightly from 15% in Q1 2023.

Cash Flow:
Cash flow from operations reached $26.2 million in Q1 2024, representing a 12% margin, while free cash flow was $23.0 million, with a 11% margin.

Read their investor update.

Key Business Highlights for Q1 2024

  • Klaviyo introduced Klaviyo portfolio, aimed at global and multi-account customers.
  • The company launched its first international product, a French language version, and expanded its SMS offering to nine countries.
  • The customer base grew to over 146,000 by the end of Q1 2024, up from 125,000 YoY, with 2,157 customers generating over $50,000 ARR—a 69% YoY increase.
  • Klaviyo maintained a Net Revenue Retention (NRR) of 114%.

Financial Outlook for Q2 2024

Revenue Guidance:
For Q2 2024, Klaviyo expects revenue between $211.0 million and $213.0 million, representing a 28%-29% YoY growth.

Non-GAAP Operating Income:
The company projects non-GAAP operating income of $19.5 million to $22.5 million, with an expected 9%-11% non-GAAP operating margin.

Read their investor update.

Full-Year 2024 Guidance

Revenue Forecast:
For FY 2024, Klaviyo anticipates revenue in the range of $899.0 million to $907.0 million, representing a 29%-30% YoY growth.

Non-GAAP Operating Income:
The company forecasts non-GAAP operating income between $97.0 million and $105.0 million, with an 11%-12% operating margin.

Strategic Focus for 2024

Klaviyo plans to continue its investments in AI-driven features and customer growth strategies, with a strong emphasis on international expansion and SMS growth. The company will also focus on increasing its up-market penetration, aiming to onboard more large accounts generating substantial ARR.

Conclusion

Klaviyo closed 2023 with solid financial growth, expanded product offerings, and a growing customer base. The company’s focus on innovation, AI, and expanding global presence positions it well for continued success in 2024, with strong revenue and operating income forecasts for the coming quarters.